Richard

I'm in the middle of breaking up with my girlfriend. We own a couple of investment properties together and I need to find out if I can borrow enough to get the properties into name and buy my self a new place. But call me old fashioned I do not really want to discuss this issue here in public, I'd prefer to sit face to face.

Juergen

My tenant called me today to let me know that they have two(2) wasp nests under there balcony.

We have stated in our lease agreement that "…the tenant is responsible for the eradication of insect and vermin infestations caused by the tenants activities or lack of cleanliness. "
Well I guess it is not really there fault that the wasps build there nests there so that clause may not apply.

Is there a rule as to who should pay for the removal of the insects?

KP,

I have just done a little research in regards to CGT and believe that the capital gain is not added to your gross income.

Therefore it is not lifting you up into the next tax bracket it is only taxed with your marginal tax bracket you are in. So if your salary is $50,000 you are in the 30% bracket, that means your gain is taxed with 30% and if you were holding the property for more than 12 month you get only taxed on half of your gain.

Remember that I’m not an accountant and have not sold any of my properties yet but try this calculators they may help to understand:

http://www.cch.com.au/cgi-bin/cgt00isapi.dll/
http://www.yourmortgage.com.au/calculators/capital_gains_tax/

jsandso

Hi Robert,

I believe that there is a little mistake in your results in regards to the capital gains calculation.

-$6,796.18 Capital Gains Tax (25%)

I got a different result and to confirm that my calculation is not to far off I searched for a calculator on the Internet and found one here http://www.cch.com.au/cgi-bin/cgt00isapi.dll/
which calculates $13,172 CGT, based on your figures.

I worked it out that way but not sure if it is correct:

Capital Gain $28,025.5 (50% of $56,051.00)
Total Income $80,000+$28,025.5 = $108,025.50
Tax on $108,025.50 = $38,104.37
Tax on $80,000 = $19,662.00
Difference (CGT) = $18,442.37

Could someone please explain the correct way to work out the CGT?

Robert could you please explain how you got this figures?
Effect of Inflation
-$1,370.64 Income Year 1
-$1,336.37 Income Year 2
-$1,302.96 Income Year 3
-$1,270.39 Income Year 4
-$1,238.63 Income Year 5

I get following figures:

the property is negativly geared $29/week or $1500/annum
value of property after 5 years= $161,051
rental yeild = 7.8%
IRR (5 Years) = 76.58%
Gross profit after 5 years = $47,690
less $11,351 CGT = $36,339
less 3% ($4831) selling agent commission = $31,508 net Profit (Not including depreciation)

I think for some people this is better than nothing, but with an income of $80000 I probably would go for better quality homes near the coast.

jsandso

Today he closed down his Statesman Homes Building Company and another division will follow.

From The West
http://www.thewest.com.au/20050427/news/general/tw-news-general-home-sto131035.html

Hi Marisa,

yes it is Landlords responsibility, as it is your house you don’t want it eaten away alive by white ants.

It cost us about $130/year per property here in Perth.

That pest control guy just found termites in a piece of timber I put in the ground 4 years ago to seperate the vegie patch from the garden beds. Millions of them, that whole timber was alive.[crying]

jsandso

Yes I can confirm that, same thing here

LizardKing

congratulation to your new purchase.

I agree but everything else should be considered as well like transport, shops, schools, kindergarten and so on. I believe you have made a good choice with Mindarie WA as I have two IP’s there myself.

$285/week is a good rent for 4×2 on a cottage block, I think I have to up my rent when the next lease is due. Unfortunately another landlord a couple houses from my IP is trying to rent for only $240. He could easily get $260 at the moment.

We are managing our self’s and so far no problems.
We had one tenant, he was a crayfisher, and he paid us rent upfront for 9 month. He said he only has money after the crayfish season and wants to pay us while he still has money left.

In our other IP we have a young girl on career leave from England with her parents. She wants to save bank fees and paid us 6 month upfront. I think they are very kind to us.[biggrin]
I’m not sure if a property manager would tell you that they have received so much money upfront.

Not so sure with growth, the population seems to decline from 2011 on. Check this out:
http://www.id.com.au/wanneroo/forecastid/Default.asp?MnID=4&PgID=1&WebID=230&SVG=1
I don’t know how they coming up with this predictions.

jsandso

Hi Marisa,
we have pool maintenance and lawn mowing included in the rent with $15. The pool guy charges $37 + chemicals which brings it to about $42-45/month all year around. Lawn mowing is only for 6-7 month a year at $25.

We supplied our tenants with a Kreepy Crawly and a pool brush. I want there kids to be as save as possible when using the pool. It is just like an insurance.

Also if the chemical level is maintained your chlorinater cell may last a bit longer, that is if you have a saltwater pool.

jsandso